{"data":{"id":"us-ky/krs-355.3-404","jurisdiction":"us-ky","citation":"KRS 355.3-404","heading":"Impostors -- Fictitious payees.","body":"(1) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument\nto issue the instrument to the impostor, or to a person acting in concert with the\nimpostor, by impersonating the payee of the instrument or a person authorized to act\nfor the payee, an indorsement of the instrument by any person in the name of the\npayee is effective as the indorsement of the payee in favor of a person who, in good\nfaith, pays the instrument or takes it for value or for collection.\n(2) (a) If:\n1. A person whose intent determines to whom an instrument is payable\n(KRS 355.3-110(1) or (2)) does not intend the person identified as payee\nto have any interest in the instrument; or\n2. The person identified as payee of an instrument is a fictitious person,\nthe rules set out in paragraph (b) of this subsection apply until the instrument\nis negotiated by special indorsement.\n(b) 1. Any person in possession of the instrument is its holder.\n2. An indorsement by any person in the name of the payee stated in the\ninstrument is effective as the indorsement of the payee in favor of a\nperson who, in good faith, pays the instrument or takes it for value or for\ncollection.\n(3) Under subsection (1) or (2) of this section, an indorsement is made in the name of a\npayee if:\n(a) It is made in a name substantially similar to that of the payee; or\n(b) The instrument, whether or not indorsed, is deposited in a depositary bank to\nan account in a name substantially similar to that of the payee.\n(4) With respect to an instrument to which subsection (1) or (2) of this section applies,\nif a person paying the instrument or taking it for value or for collection fails to\nexercise ordinary care in paying or taking the instrument and that failure\nsubstantially contributes to loss resulting from payment of the instrument, the\nperson bearing the loss may recover from the person failing to exercise ordinary\ncare to the extent the failure to exercise ordinary care contributed to the loss.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33474","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"ab41deb2f9846046a2708c3b5529944d2195e54e489465dc92b4ff24b60041e0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-403","next":"us-ky/krs-355.3-405"},"notice":"GroundRules: Original legal text. Not legal advice."}